By 
A former Mozambique Finance Minister, Manuel Chang, was sentenced on Friday to 8-1/2 years in prison after being found guilty of participating in a fraud involving US$2 billion in loans to three state-owned companies to develop the southern African country’s marine infrastructure.
Chang, 69, was convicted in August by a Brooklyn jury of conspiracy to commit wire fraud and conspiracy to commit money laundering in the “tuna bonds” case, following a four-week trial, according to a report by Reuters.
In imposing the sentence, US District Judge, Nicholas Garaufis, said he would recommend Chang be credited for the approximately six years he had been in custody awaiting trial, meaning he would be eligible to be released from US prison and deported to Mozambique after 2-1/2 years.
“The victims trusted Mr. Chang to steward their investments and his country’s development in a corruption-free manner,” Garaufis said at Chang’s sentencing in Brooklyn federal court.
The case stemmed from US$7 million prosecutors said Chang received in bribes from Emirati-Lebanese shipbuilding firm Privinvest, in exchange for his approving a Mozambique government guarantee for loans from banks including Credit Suisse to three state-backed companies.
Read more: Chapo sworn in following Mozambique’s disputed presidential election
The loans were meant to develop Mozambique’s fishing industry and improve maritime security, but the projects collapsed and the state-backed companies defaulted, leaving investors – including some in the United States – with millions of dollars in losses, prosecutors said.
Donors such as the International Monetary Fund temporarily halted support to Mozambique, triggering a currency collapse and financial turmoil.
The prosecutors had urged a sentence of 11-1/4 and 14 years in prison.
“For $7 million, he helped people loot his country,” prosecutor Jonathan Siegel said at the hearing.
Chang apologized, telling the court he thought at the time that the projects would be good for Mozambique, but has since come to realize his actions were wrong.
“I deeply regret the damages that I caused,” Chang said through a Portuguese interpreter.
Chang plans to appeal his conviction, his lawyer Adam Ford said after the hearing.
WARNING! All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express permission from ZAMBIA MONITOR.
Comments